Is there life after foreclosure?

Question

Spouse and I are disabled. Got caught up in the sub-prime mortgage that has hit the nation. The loan originator advised us that in two years into the mortgage, they would re-finance us for a lower interest rate. Their are no longer around, the loan changed hands 4 times in 1 1/2 yrs. and the current lender questioned how with our income we ever got the loan in the first place.

A local attorney advised us to walk away, and our house is now up for sheriff's sale. We put all we had into this house, and it has been a tremendous loss.

Is all hope lost, of us ever getting past this? I would not wish this on anyone, and I know we are not alone in this, but it doesn't comfort me to know their are others feeling this pain.

Thank you in advance.

Answer 1

About 25 years ago, I bought a place for $125K at the top of the market. It was a long commute and I grew to hate the neighborhood (lots of noisy renters who didn't take care of their yards, had car repair businesses in their garages, etc.). When the housing market tanked a couple years later, I sold at a short sale for $75K. A short sale isn't as bad as a foreclosure on your credit report. But, it did make it hard to get credit for just about anything for the 7 years it was on my record.

Today, I own a primary residence worth about $850K and a rental condo, and I'm in a short sale escrow on another rental (getting it for $202K and it peaked at $375K in 2005). My credit score is about 800. If I want to, I can walk into any car dealership, sign the contract, and drive away with a new car without putting down a dime.

So yes, there is life after a foreclosure. Sure it seems devastating now and you'll feel bad about it for a while. But, there's a reason these things only stay on your record for 7 years. This is a very forgiving nation and you will have another chance. Just hang in there and keep your credit record clean. You'll be back on your feet before you know it.

Answer 2

yes but it will be a major struggle as it will be not less than 4 years before you can buy again unless you do an owner financed home. If you do so always pay by check only as when you can get a proper mortgage on a home you have a paper trail of payments

Answer 3

I am so sorry for your situation.  However, your attorney should have advised you to at least attempt a short sale or a Deed in Lieu, which would spare you the possibility of a judgement against you later.

The next time you get a loan, remember these things:.

1. If you cannot afford the fixed rate, then a cheaper house is better.

2.  Anytime a loan officer says, "Oh, we'll refinance in two years"...know that he may not be there in two years, and your credit/income/home value may not allow you to either..you need a crystal ball.

3.  Deal with only A-paper lenders.  Subprime is legalized loan sharking.

4.  Never consolidate cars, credit cards, etc into your home.  YOU NEVER save money that way....all you are doing is changing unsecured debt to secured debt and stretching out your payments.  

5.  Don't use your house as an ATM card.

6.  Never assume that the value of a home only goes up.

Answer 4

It's a hardship of landing and Yes! you will be able to move on even if it is at slower pace. Your faith in God through Jesus will help you as others also. God will make things better, you just have to keep your faith and keep thinking positive no matter how negative it feel's. God will work on it with you and in time with patience your lives will get better. In God we seek to handle all burdens that land upon us in stress by others. He will lift such off your shoulders and put you where he thinks is best through Jesus Our Savior. Hang in there and don't give up.